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Justia Daily Opinion Summaries

New Hampshire Supreme Court
March 25, 2021

Table of Contents

In the Matter of Michael & Anne Greenberg

Family Law

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New Hampshire Supreme Court Opinions

In the Matter of Michael & Anne Greenberg

Docket: 2019-0734

Opinion Date: March 24, 2021

Judge: Gary E. Hicks

Areas of Law: Family Law

Father, petitioner Michael Greenberg, appealed a circuit court order that modified his child support obligation pertaining to shares of vested restricted stock, and ordered him to pay child support arrearages of nearly $91,000 to mother, respondent Anne Greenberg. The shares of vested restricted stock were listed as “taxable benefits” on Father's paystub. Father testified that the restricted stock awards were “part of [his] total compensation,” and that the Internal Revenue Service treated his vested restricted stock as income. Since the parties’ December 2015 divorce, Father has netted $324,856.63 from the sale of vested restricted stock. Pertinent here, the parties’ final divorce decree awarded Father “any stock options he may have an interest in with [his current employer] free of any interest on the part of [Mother].” The uniform support order issued with the decree required Father to pay Mother “28% of any bonus he may receive within 3 days of receipt” as child support in addition to regular monthly child support. Neither the decree nor the uniform support order expressly referred to Father’s restricted stock awards. Father did not include the initial 5,000 shares of restricted stock he received on his financial affidavit submitted during the parties’ divorce proceedings; none of those shares had vested as of the time of the decree. Nor did he voluntarily disclose to Mother when he sold restricted stock. He also did not pay any portion of those proceeds as child support. The New Hampshire Supreme Court held Father's exercised stock options “must be included as income for the purposes of calculating child support” because “such options are analogous to a 'bonus’” and “are also included within the phrase 'all income from any source.’” To the extent that Father argued the trial court’s child support order impermissibly modified the parties’ divorce decree, the Supreme Court disagreed. "Even if we were to agree with him that the restricted stock awards were distributed to him in the divorce as property, doing so would not preclude the trial court from treating vested restricted stock as income for child support purposes."

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